Starting March 1, 2026, certain residential real estate transactions will be subject to mandatory reporting to the Financial Crimes Enforcement Network (FinCEN).
We will be required to report to FinCEN when:
- the real estate transaction is residential (by FinCEN’s broader definition);
- the transaction closes on or after March 1, 2026;
- the Buyer is an entity (corporation, LLC, etc.) or a trust; and
- there is no lender with an anti-money laundering (AML) program involved.
The required reporting also applies to no consideration transactions.
Due to these new requirements, it is critical that we know well in advance of closing whether the Buyer is a corporation, LLC, other legal entity, or trust. Any late changes to Buyer structure may result in closing delays.
Background
This new rule is based on the overwhelming success of FinCEN’s Geographic Targeting Orders (GTOs), but now rolled out nationwide. This new rule replaces the GTO program and requires more detailed information than was previously collected.
Information That Will Be Required
To comply with the FinCEN reporting requirements, we will be asking both Buyers and Sellers for information beyond what we typically gather, including the following:
- Entity/Trust information
- Person(s) associated with the transferee (authorized signers and beneficial owners)
- Transferor/Seller information
- If the Seller is Trust, provide the trustee’s information
- Payment Information, including bank account details for sourcing funds
- Detailed payment information for payments made on behalf of the Transferee/Buyer
This information is required to be in compliance with FinCEN. Failure to comply can result in civil and criminal penalties, including incarceration. Therefore a closing will not be scheduled until all required information is provided.
Helpful Resources
Here are some helpful links if you would like more information about the RER Rule:
The Buyer Collection Form – all the data fields required for buyer(s)
The Seller Collection Form – all the data fields required for seller(s)
Real Estate Reporting Rule Exemption Checker
We wanted to share this information in advance so you and your clients can prepare for these new requirements. There will be more information as we approach the March 1, 2026 starting date. If you have a current transaction that meets the criteria for reporting to FinCEN, we will be reaching out to you soon!